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MDA Acquired by Northern Private Capital (from Maxar) for $1 Billion, Company Headquarters to Return to Canada
Tuesday, December 31, 2019Company Profile | Careers | Follow Company
MDA to Return to Canadian Ownership, Long Term BC Heavyweight Company Acquired for $1 Billion by Northern Private Capital from Maxar Technologies
Richmond, BC, December 30, 2019--(T-Net)--A consortium led by Northern Private Capital (NPC), a Toronto-based investment firm led by John Risley and Andrew Lapham, announced today it has signed a definitive agreement to acquire MDA from Maxar Technologies (NYSE:MAXR)(TSX:MAXR) for CAD $1 billion.
Upon closing, MDA's corporate headquarters will return to Canada.
Founded in 1969, MDA is Canada's largest space technology developer and manufacturer, with over 1,900 employees across Canada.
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Through a strong collaboration and partnership with the Government of Canada that spans several decades, the company has delivered world-leading, iconic technologies such as the Canadarm family of space robotics for the U.S. Space Shuttle program and the International Space Station and three generations of RADARSAT Earth observation satellites for the Canadian government.
Under the terms of the agreement, the NPC-led consortium will acquire all of MDA's operations across Canada and the UK. The transaction is not subject to any shareholder approvals and is expected to close in 2020 following receipt of regulatory approvals.
"Over its 50-year history, MDA has grown from a BC-based start-up into a world-class space technology company and an anchor of Canada's space program," said John Risley. "We are thrilled to partner with Mike Greenley and the rest of the MDA team and are excited about the significant growth potential we see for the company. As a Canadian, I am so proud this iconic Canadian company will once again be owned and controlled in Canada."
The acquisition is being financed with a combination of equity and debt. Equity is being provided by NPC and certain of its limited partners, as well as several leading investors including Jim Balsillie and Senvest Capital along with funds managed by Senvest Management. Debt is being provided by Scotiabank, Bank of Montreal, PointNorth Capital and Canso Investment Counsel. NPC is being advised by BMO Capital Markets and Scotiabank.
MDA undertook a corporate reorganization in 2016 that included the formation of SSL MDA Holdings, Inc. ("SSL MDA Holdings"), the U.S. Operating Company of MDA, under the guidance and approval of the U.S. Department of Defense (DoD), and acquired US-based DigitalGlobe for $3.1 Billion in Feb 2017. SSL MDA Holdings operated under a Security Control Agreement (SCA) with DoD, allowing it to pursue and execute U.S. Government programs that require security clearances.
"The sale of MDA furthers execution on the company's near-term priority of reducing debt and leverage," said Dan Jablonsky, Maxar CEO. "It also provides increased flexibility, range, and focus to take advantage of substantial growth opportunities across Earth Intelligence and Space Infrastructure categories. After the transaction is complete, Maxar will retain leading capabilities in geospatial data and analytics, satellites, space robotics, and space infrastructure, and we will continue to have strong alignment with our defense and intelligence customers, the evolving requirements of civil governments, and the pursuit of innovation seen in the commercial marketplace. We thank the talented employees of MDA, who have built a world-class business with unique capabilities, and we look forward to working with them as a commercial partner and component supplier to Maxar going forward."
"This transaction — when combined with the recently completed sale of real estate in Palo Alto — reduces Maxar's overall debt by more than $1 billion and significantly reduces Maxar's leverage ratio," said Biggs Porter, Maxar CFO.
About Northern Private Capital
Northern Private Capital is a Toronto-based private investment firm focused on making opportunistic, long-term investments in partnership with great management teams. NPC invests in proven businesses with high growth potential driven by unique, proprietary technology across a broad spectrum of industries. NPC is currently investing from its inaugural flagship fund which includes commitments from world-class entrepreneurs, including a significant commitment from John Risley.
About MDA
MDA develops and delivers advanced surveillance and intelligence solutions, defence and maritime systems, radar geospatial imagery, space robotics, satellite antennas, and communication subsystems. From locations across Canada, MDA's global reach and heritage serving international markets with innovative and iconic solutions for space and terrestrial applications is unparalleled.
MDA has successfully exported its made-in-Canada solutions for more than four decades, and is poised to capture synergies across its associated companies to expand its capabilities in both traditional and developing markets. MDA is committed to delivering innovation and value in next-generation space exploration, Earth observation, space awareness, and defence systems.
The new space economy is based on agility, rapid technology development and harnessing capital to turn commitments into reality, generating benefits for humanity as well as a return on investment. MDA's 1,900 future-focused employees are working together to turn ideas into the products, services, systems, and solutions that make a better world.
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